December cannot be ruled out – Rabobank

By FXStreet FXStreet (Guatemala) – Analysts at Rabobank explained that the speeches by FOMC participants in recent weeks suggest that the positions taken at the September meeting have not materially changed despite the disappointing Employment Report.

Key Quotes:

“If we look at the dot plot, that would mean an overwhelming majority for a December rate hike. Keep in mind that when it comes to voting, not all that are opposed will vote against the majority decision.”

“We are very close to the Fed’s desired levels. There is still a very good chance that the economy will reach the Fed’s finish line by December.”

“Meanwhile, fiscal policy diversions in December are less likely now that the debt ceiling should be raised by November 5. The possibility of a temporary government shutdown if a continuing resolution is not passed by December 11 may not impress the FOMC very much because of its limited and transitory impact on the economy and markets.”
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Source:: FX Street